HKEX looks to jump in on Spac IPO fever in Asia

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By Jonathan Breen
04 Mar 2021

Hong Kong has begun exploring ways to allow listings by special purpose acquisition companies (Spacs), which are gaining popularity in Asia after taking the US by storm in the past year. But while the early-stage discussions show the bourse’s growth ambitions, it will have to clear numerous roadblocks to make blank-cheque firms a reality. Jonathan Breen reports.

Spacs are cash shells that raise money through IPOs with the aim of acquiring a company. US-focused Spacs were in hot demand last year, but the popularity of the asset class has grown significantly in 2021, with filings and listings by Asia-focused Spacs almost every week this year.

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